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Santander launched their new ‘Edge Up’ current account earlier this year, effectively replacing the 1-2-3 account which is no longer available to new customers.
Existing customers can still keep their 1-2-3 account if they wish, but it is worthwhile to check whether switching to the new Edge Up account will be more beneficial.
The Edge Up account is similar to the 1-2-3 account in many ways, with interest payable and cashback paid on selected bills. There are a few differences however, illustrated below:
| Edge Up Account | 1-2-3 Account | |
|---|---|---|
| Cashback on bills | 1% on selected household bills when paying by direct debit (max £15 per month) | • 1% on council tax bills, mobile/home phone, broadband and TV packages (capped at £5 per month). • 2% on energy bills and home and life insurance policies (capped at £5 per month). • 3% on water bills (capped at £5 per month). |
| Cashback on essential spending | 1% at supermarkets and travel costs when using debit card (max £15 per month) | N/A |
| Monthly interest | 3.50% AER on balances up to £25,000 | 2% AER on balances up to £20,000 |
| Cost | £5 monthly account fee | £4 monthly account fee |
| Account requirement | • Over age 18 • Pay in at least £1,500 per month • Have 2 active direct debits |
• Over age 18 • Pay in at least £500 per month • Have 2 active direct debits |
As you can see there is potential for a greater amount of cashback to be achieved each month, with a maximum of £30 pm with the Edge Up account vs a maximum of £15 pm with the 1-2-3 account.
In addition, interest is paid at a higher rate and up to a higher balance. Santander have a handy tool on their website which allows you to assess which of their accounts is the most beneficial depending on the way you use your account. See https://www.santander.co.uk/.
Existing Santander 1-2-3 account holders can move to the new Edge Up account free of charge. To do this, you can simply log in online and complete the process through your online banking account.
Alternatively, it can be done in branch or by telephone. Once changed, you cannot move back to the 1-2-3 account as it is no longer available. Your existing account number and sort code will remain unchanged if you do decide to convert your account.
Note: This article is not intended to be advice and should not be viewed or relied on as such.
